Ascending Triangle Bullish for Tron [TRX]?

Tron launched its mainnet at the end of May this year. There was significant anticipation behind the mainnet launch which resulted in price significantly appreciating in the build-up. However, in line with the rest of the cryptocurrency market, Tron has depreciated considerably since. Tron traded around $0.063 around the time of its mainnet launch and now trades at $0.022.

However, the project has been forming a series of higher lows since mid-August along with other similar projects such as Icon and EOS. An ascending triangle pattern is a bullish continuation pattern and would result in a breakout to the upside if it plays out as expected.

EOS and Icon are forming symmetrical triangle patterns on their charts giving them a more equal chance of either a bullish or bearish breakout. The ascending triangle which is forming in Tron gives it a more bullish disposition and could be set up to outperform during the next market rise.

Tron Daily Chart – Source: TradingView.com

The price action for Tron is trading close to the trend line of the triangle. A downward movement across the market would risk the price of Tron falling out of the pattern and losing its set up. It is likely that Bitcoin will have a big factor to play in how the triangle pattern plays out.

The market leader Bitcoin currently represents over 53% of the entire cryptocurrency market cap and has also been forming a triangle pattern. A bearish breakout from Bitcoin here would likely result in Tron moving below the ascending triangle it has been forming.

Bitcoin Daily Chart – Source: TradingView.com

Key Takeaways:

Tron forming a bullish ascending triangle pattern since mid-August.

The ascending triangle pattern is a bullish continuation pattern and would be anticipated to result in a break out to the upside.

Tron may be setting up to outperform during the next market rise.

How the pattern plays out likely depends significantly on Bitcoin. With the market leader representing over 53% of the cryptocurrency market cap and also forming a triangle pattern, its movements will likely be mirrored by Tron.

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